UPDATE: JP Morgan Reduces PT to $30 on Facebook; Advertising Potential Still a Positive

JP Morgan reiterated its Overweight rating on Facebook

but reduced its price target from $45 to $30 on near-term lockup and payments headwinds. JP Morgan said, "We remain positive on Facebook as we expect Advertising revenue to re-accelerate in the back half of 2012 and into 2013, even as users rapidly shift toward mobile. We recognize that Payments will remain challenging for at least the next few quarters and we are reducing estimates for Payments revenue and overall profitability. Street focus remains on heavy lock-up expirations in October and November, but for those willing to look out a bit further we believe the risk/reward is attractive with Facebook trading at 7.5x 2014E EBITDA." Facebook closed at $18.06 on Friday.